Packages starting at $99
Here at DoMyLLC our trained incorporation specialists understand the needs of small businesses and are dedicated to providing excellent customer service. Incorporating with DoMyLLC takes 15 minutes of your time. Simply place an order and provide a signature if needed. We make it that easy to DO.
Have Questions? Speak with a DoMyLLC specialist at (888)-DoMyLLC (366-9552).
A Corporation is a business structure that offers assett protection to individuals that own and operate the company. A corporation is a separate legal entity that can raise capital, build credit, enter into contracts and be sued like an individual.
Corporations are formed for small business in order to:
- Asset Protection – owners are not personally liable for the debts of the company.
- Reduce tax liability (corporate tax rates are much less then individual tax rates).
- Less chance of being audited.
- More professional business structure in the eye of consumers.
Packages starting at $99
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What are the different types of corporations?
- General for Profit Corporation (also refereed to as a C-Corp)
- Professional Corporation (also referred to as a PC)
- Nonprofit Corporation
- S Corporation (also referred to as an Scorp)
What is a General for Profit Corporation?
A General for Profit Corporation is a separate legal and tax entity from its owners, directors and officers. Because this structure separates owners from the company, they are not required to pay income tax on money the company makes. The owners are only required to pay taxes on the money they draw from the corporation. The corporation will pay tax on the money it makes just like an individual would. For more information about General for Profit Corporations click here.
What is an S Corporation?
An S-Corporation is a corporation that has elected S-Corporation tax status. The main difference with an S-Corporation is that all the profits of the company will pass thru the business to the shareholders (owners) to report with their individual income tax return. The corporation itself does not pay income tax like it does in a General for Profit Corporation.
A new filed corporation has 75 days from the date of formation to elect this tax status with the IRS in order to be taxed accordingly. For more information about S Corporations click here.
What is a Professional Corporation?
A Professional Corporation is designed for companies providing professional services by the state. Each state has different regulations however, if the state has deemed a corporation’s business activity to be a professional services, then the business must file this structure instead of a General for Profit Corporation. Most states consider the following professional services:
- Legal Services
- Medical Services
- Financial Services
** Please note that the requirements vary state to state and prior to filing a professional corporation we encourage you to speak with a lawyer and your licensing board for specific state requirements.
For more information about professional corporations click here.
What is a Nonprofit Corporation?
A Nonprofit Corporation is exactly what it says, “Nonprofit.” Unlike a C-Corp, Nonprofits do not have stock, hence they have no owner. Once the Nonprofit is filed with the state, the next step is to file a federal tax exemption 501C with the IRS. This allows the company to become tax exempt. Under this tax code the company is not allowed to pay dividends and if the company is ever dissolved all assetts must be distributed to another Nonprofit Corporation. For more information on Nonprofit Corporations click here.
What is the difference between an LLC and a corporation?
The main differences are the formalities. Corporations are required to hold annual meetings, take meeting minutes and issue stock. With an LLC, the company is not required to hold meetings, take minutes or issue stock. Do to the fact that there are far less formalities in an LLC, they have become a very popular entity structure in recent years. If you have questions, please contact our office toll free at (888)-DoMyLLC (366-9552).
Who owns a Corporation?
The owners of a corporation are called “Shareholders.” The shareholders own the company based on how much stock they have purchased.
Example: Tom and Mark go into business together. The Articles of Incorporation state that they are authorized to issue 1500 shares of stock. Tom purchases 600 shares of stock and Mark purchases 400 shares. Since 1000 shares have been issued and Tom owns 600, he would own 60%. Since Mark owns 400 shares, he would own 40%. (Keep in mind there are still 500 shares left that can be sold at a later date which will affect ownership % once they are sold).
What information is needed when incorporating?
The information needed to file the corporation:
- Corporate name
- Business address
- Registered agent and physical address
- Officers of the corporation
- Directors of the corporation
- Authorized shares and par value
- Business activity
What is a Board of Directors?
The Board of Directors are appointed by the shareholders. The directors jointly oversee the activities of the company. It is the responsibility of the board members to carry out the orders of the shareholders. In most small corporations the Board of Directors are also the shareholders.
Who are officers in a corporation?
Officers are responsible for running the day to day activities of a corporation. Officers are generally appointed by the board directors. Although many different officer positions may be appointed, there are three main officers in a corporation:
- President – Is the top executive in the company. They are responsible for the overall management of the company and ensure the duties set forth by the Board of Directors are carried out. management of the company and ensure the duties set forth by the Board of Directors are carried out.
- Secretary – Is generally responsible for maintaining all corporate records and documents.
- Treasurer – Is the chief financial officer of the company and is responsible for all corporate finances and bank accounts.
What will I receive in my package?
All standard packages include the following:
- Filed Articles of Organization
- Customized Operating Agreement
- Meeting Minutes
- Membership Certificates
- Registered Agent Service for 1 year
- Document Storage
- Compliance Reminders
What is the process once you complete an order?
- Review & Processing – Your order will be reviewed and processed by one of our document filing specialists.
- Signature – Documents need to be signed.
- State Approval – the documents will be sent to the state for approval.
- Completion – Once we receive the final paperwork back from the state, we complete your order and send the final documents for your records.